UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
Date of Report: January 22, 2013
(Date of earliest event reported)
Oak Valley Bancorp
(Exact name of registrant as specified in its charter)
CA |
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001-34142 |
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26-2326676 |
(State or other jurisdiction |
|
(Commission File |
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(IRS Employer |
of incorporation) |
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Number) |
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Identification Number) |
125 N. Third Ave. Oakdale, CA |
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95361 |
(Address of principal executive |
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(Zip Code) |
offices) |
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|
(209) 848-2265
(Registrants telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On January 22, 2013 Oak Valley Bancorp issued a press release, a copy of which is attached as Exhibit 99.1 and incorporated herein by reference. The press release announced the Companys operating results for the quarter ended December 31, 2012.
The information in this Item 2.02 in this Form 8-K and the Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
See Item 2.02. Results of Operations and Financial Condition which is incorporated by reference in this Item 7.01.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
None
(b) Pro forma financial information:
None
(c) Shell company transactions:
None
(d) Exhibits
99.1 Press Release of Oak Valley Bancorp dated January 22, 2013
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: January 22, 2013 |
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OAK VALLEY BANCORP | |
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By: |
/s/ Richard A. McCarty |
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Richard A. McCarty |
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Executive Vice President and Chief Financial Officer |
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(Principal Financial Officer and duly authorized signatory) |
Exhibit 99.1
PRESS RELEASE |
For Immediate Release
Date: |
January 22, 2013 |
Contact: |
Ron Martin/Chris Courtney/Rick McCarty |
Phone: |
(209) 848-2265 |
|
www.ovcb.com |
OAK VALLEY BANCORP REPORTS 4th QUARTER RESULTS
OAKDALE, CA Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently reported financial results for the fiscal year ended December 31, 2012. Net income for 2012 totaled $5.8 million compared to $5.9 million for 2011. After adjustment for preferred stock dividends and accretion, net income available to common shareholders was $5.3 million, or $0.69 per diluted share, compared to net income of $4.7 million, or $0.61 per diluted common share, in 2011. This represents a 13.4% increase in net income available to common shareholders and marks record earnings for Oak Valley Bancorp.
For the three months ended December 31, 2012, Oak Valley Bancorp reported net income of $1.49 million. After adjustment for preferred stock dividends and accretion, net income available to common shareholders was $1.41 million, or $0.18 per diluted share, representing a 5.7% increase in net income available to common shareholders when compared to the three months ended December 31, 2011.
Total assets grew to $660.5 million as of December 31, 2012, which was an increase of $48.3 million, or 7.9% over the prior year. Deposits increased to $587.0 million, which was an increase of $50.8 million, or 9.5% over the prior year. Gross loans at year end totaled $391.0 million, reflecting a decrease of $5.2 million, or 1.3%, from December 31, 2011.
Non-performing assets totaled $6.9 million, or 1.05% of total assets at December 31, 2012, compared to $7.5 million, or 1.22% of total assets, at December 31, 2011. Charge-offs corresponding to updated valuations account for the decline in non-performing assets.
The allowance for loan losses totaled 2.04% of gross loans at December 31, 2012 compared to 2.17% at December 31, 2011. The decrease in reserve ratio corresponds with the charge-offs on non-performing assets. The annual provision for loan losses of $1.2 million in 2012 was down from $1.5 million in 2011.
The fundamentals of the Company remain strong, including the credit quality of the portfolio and continued deposit growth, commented Chris Courtney, President. We are cautiously
optimistic about loan growth opportunities in the coming year, as we begin to see signs of increased interest in commercial borrowing.
Net interest income of $24.8 million for the year ended December 31, 2012, decreased by $335,000, or 1.3%, from the prior year. This decrease comes from new loans boarding and maturing loans repricing in a low interest rate environment, causing downward pressure on yields. The Companys net interest margin was 4.52% for the year ended December 31, 2012, compared to 4.83% for the year ended December 31, 2011. Interest margin has also been affected by excess deposits being deployed into lower yielding securities and cash based investments.
Non-interest income was $3.1 million for the year ended December 31, 2012, compared to $2.8 million the prior year. The increase primarily relates to growth in deposit related service charges and fee income generated from increased residential mortgage lending.
Non-interest expense was $18.2 million for the year ended December 31, 2012, compared to $17.4 million for the prior year, an increase of $855,000, or 4.9%. This increase consist of costs associated with operating two additional branches for a full year, as well as costs related to servicing deposit growth across all branches.
We are pleased to report another record year for earnings, stated Ron Martin, CEO. Our ability to perform with the best of our peers is a tribute to the relationship banking model and the character and capacity of our customers.
The Company currently operates through 14 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop.
For more information, please call 1-866-844-7500 or visit www.ovcb.com.
This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on managements knowledge and belief as of today and include information concerning the corporations possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.
###
Oak Valley Bancorp
Financial Highlights (unaudited)
($ in thousands, except per share) |
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4th Quarter |
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3rd Quarter |
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2nd Quarter |
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1st Quarter |
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4th Quarter |
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Selected Quarterly Operating Data: |
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2012 |
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2012 |
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2012 |
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2012 |
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2011 |
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Net interest income |
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$ |
6,115 |
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$ |
6,254 |
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$ |
6,212 |
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$ |
6,264 |
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$ |
6,335 |
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Provision for loan losses |
|
250 |
|
300 |
|
300 |
|
300 |
|
300 |
| |||||
Non-interest income |
|
855 |
|
790 |
|
672 |
|
831 |
|
636 |
| |||||
Non-interest expense |
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4,513 |
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4,527 |
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4,612 |
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4,597 |
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4,259 |
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Income before income taxes |
|
2,207 |
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2,217 |
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1,972 |
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2,198 |
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2,412 |
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Provision for income taxes |
|
718 |
|
738 |
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620 |
|
737 |
|
915 |
| |||||
Net income |
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1,489 |
|
1,479 |
|
1,352 |
|
1,461 |
|
1,497 |
| |||||
Preferred stock dividends and accretion |
|
(84 |
) |
(84 |
) |
(114 |
) |
(169 |
) |
(168 |
) | |||||
Net income available to common shareholders |
|
$ |
1,405 |
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$ |
1,395 |
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$ |
1,238 |
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$ |
1,292 |
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$ |
1,329 |
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Earnings per common share - basic |
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0.18 |
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0.18 |
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0.16 |
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0.17 |
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0.17 |
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Earnings per common share - diluted |
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0.18 |
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0.18 |
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0.16 |
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0.17 |
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0.17 |
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Dividends declared per common share |
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- |
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- |
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- |
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- |
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- |
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Return on average common equity |
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8.87% |
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9.02% |
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8.36% |
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8.93% |
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9.34% |
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Return on average assets |
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0.91% |
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0.97% |
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0.92% |
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0.98% |
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1.00% |
| |||||
Net interest margin (1) |
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4.15% |
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4.57% |
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4.73% |
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4.67% |
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4.70% |
| |||||
Efficiency ratio (1) |
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63.23% |
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63.11% |
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65.28% |
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63.74% |
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60.06% |
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Capital - Period End |
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Book value per share |
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$ |
7.99 |
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$ |
7.85 |
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$ |
7.63 |
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$ |
7.37 |
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$ |
7.37 |
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Credit Quality - Period End |
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Nonperforming assets/ total assets |
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1.05% |
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1.05% |
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1.20% |
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1.12% |
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1.22% |
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Loan loss reserve/ gross loans |
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2.04% |
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2.05% |
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2.05% |
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1.98% |
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2.17% |
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Period End Balance Sheet |
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($ in thousands) |
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Total assets |
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$ |
660,480 |
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$ |
627,817 |
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$ |
596,417 |
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$ |
593,513 |
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$ |
612,172 |
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Gross loans |
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390,986 |
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388,714 |
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390,515 |
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392,584 |
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396,202 |
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Nonperforming assets |
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6,923 |
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6,611 |
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7,185 |
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6,656 |
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7,477 |
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Allowance for loan losses |
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7,975 |
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7,953 |
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8,008 |
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7,792 |
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8,609 |
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Deposits |
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586,993 |
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553,333 |
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526,407 |
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518,727 |
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536,204 |
| |||||
Common equity |
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63,219 |
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62,075 |
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60,185 |
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58,092 |
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56,902 |
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Total capital (2) |
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69,969 |
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68,825 |
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66,935 |
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71,592 |
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70,402 |
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Non-Financial Data |
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Full-time equivalent staff |
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130 |
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123 |
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125 |
|
126 |
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128 |
| |||||
Number of banking offices |
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14 |
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14 |
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14 |
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14 |
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14 |
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Common Shares outstanding |
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Period end |
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7,907,780 |
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7,909,280 |
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7,890,905 |
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7,883,780 |
|
7,718,469 |
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Period average - basic |
|
7,762,261 |
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7,750,727 |
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7,728,024 |
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7,722,609 |
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7,705,164 |
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Period average - diluted |
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7,793,523 |
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7,778,146 |
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7,750,952 |
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7,743,941 |
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7,737,248 |
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Market Ratios |
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Stock Price |
|
$ |
7.45 |
|
$ |
7.49 |
|
$ |
6.96 |
|
$ |
7.39 |
|
$ |
6.75 |
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Price/Earnings |
|
10.38 |
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10.49 |
|
10.84 |
|
11.01 |
|
9.87 |
| |||||
Price/Book |
|
0.93 |
|
0.95 |
|
0.91 |
|
1.00 |
|
0.92 |
|
(1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.
(2) Includes $6.75 million in preferred stock issued to the U.S. Treasury under the SBLF Program.
Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million.
|
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Year Ended December 31, |
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|
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2012 |
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2011 |
| ||
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|
|
|
|
| ||
Net interest income |
|
$ |
24,845 |
|
$ |
25,180 |
|
Provision for loan losses |
|
1,150 |
|
1,500 |
| ||
Non-interest income |
|
3,148 |
|
2,751 |
| ||
Non-interest expense |
|
18,249 |
|
17,394 |
| ||
Income before income taxes |
|
8,594 |
|
9,037 |
| ||
Provision for income taxes |
|
2,813 |
|
3,176 |
| ||
Net income |
|
5,781 |
|
5,861 |
| ||
Preferred stock dividends and accretion |
|
(452 |
) |
(1,161 |
) | ||
Net income available to common shareholders |
|
$ |
5,329 |
|
$ |
4,700 |
|
|
|
|
|
|
| ||
Earnings per common share - basic |
|
0.69 |
|
0.61 |
| ||
Earnings per common share - diluted |
|
0.69 |
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0.61 |
| ||
Dividends declared per common share |
|
- |
|
- |
| ||
Return on average common equity |
|
8.80% |
|
8.67% |
| ||
Return on average assets |
|
0.95% |
|
1.02% |
| ||
Net interest margin (1) |
|
4.52% |
|
4.83% |
| ||
Efficiency ratio (1) |
|
63.83% |
|
61.28% |
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|
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|
|
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Capital - Period End |
|
|
|
|
| ||
Book value per share |
|
$ |
7.99 |
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$ |
7.37 |
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|
|
|
|
|
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Credit Quality - Period End |
|
|
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Nonperforming assets/ total assets |
|
1.05% |
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1.22% |
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Loan loss reserve/ gross loans |
|
2.04% |
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2.17% |
| ||
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|
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Period End Balance Sheet |
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|
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($ in thousands) |
|
|
|
|
| ||
Total assets |
|
$ |
660,480 |
|
$ |
612,172 |
|
Gross loans |
|
390,986 |
|
396,202 |
| ||
Nonperforming assets |
|
6,923 |
|
7,477 |
| ||
Allowance for loan losses |
|
7,975 |
|
8,609 |
| ||
Deposits |
|
586,993 |
|
536,204 |
| ||
Common equity |
|
63,219 |
|
56,902 |
| ||
Total capital (2) |
|
69,969 |
|
70,402 |
| ||
|
|
|
|
|
| ||
Non-Financial Data |
|
|
|
|
| ||
Full-time equivalent staff |
|
130 |
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128 |
| ||
Number of banking offices |
|
14 |
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14 |
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|
|
|
|
|
| ||
Common Shares outstanding |
|
|
|
|
| ||
Period end |
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7,907,780 |
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7,718,469 |
| ||
Period average - basic |
|
7,740,990 |
|
7,708,853 |
| ||
Period average - diluted |
|
7,766,745 |
|
7,738,999 |
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Market Ratios |
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Stock Price |
|
$ |
7.45 |
|
$ |
6.75 |
|
Price/Earnings |
|
10.85 |
|
11.07 |
| ||
Price/Book |
|
0.93 |
|
0.92 |
|
(1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.
(2) Includes $6.75 million in preferred stock issued to the U.S. Treasury under the SBLF Program.
Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million.